Forex: GBP/USD: Pound hovering at 1.6160 daily trendline support

By IBTimes Staff Reporter | September 20 2009 11:12 PM

FXstreet.com (Barcelona) - The Pound's decline from 1.6740 high on Sept 11 has reached the upward trending support line from Jul 8 low at 1.6150/60, after having broken below 1.6200 during Asian session.

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According to Ian G Coleman, collaborator at FXstreet.com, the Pound could break below current levels to test 1.6115 area: We have made it all the way to the daily trend line at 1.6160. I would at least expect a descent pullback from here. We have a previous low at 1.6115. The long term picture (daily chart) is not looking good for cable with us testing the neckline on a large head and shoulders formation.

Support levels below 1.6150/60 (trendline from Jul 8 low), lie at 1.6110 (Sept 1 & 2 low) and 1.6035 (Jul 12 low). On the upside, the Pound could find resistances at 1.6260 (Session high) and above here, 1.6295/00 and 1.6345.

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